| Article ID: | iaor199146 |
| Country: | United States |
| Volume: | 29 |
| Start Page Number: | 1 |
| End Page Number: | 5 |
| Publication Date: | Dec 1988 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Galvin Thomas M., Van Deusen Derek L. |
The economic lot scheduling method described is applied to three product lines in a company with annual sales of around $300 million. The implementation of this system resulted in an inventory reduction of $8 million (20% of total inventory) and interest savings alone of $640000 per year. This system is interactive and includes a unique approach for generating gross requirements for lower-level parts.